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India extended US$18 mn Line of Credit to Maldives for expansion of fishing facilities at MIFCO

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India-extends-Line-of-Credit-worth-18-million-US-dollars-to-Maldives-for-expansion-of-fishing-facilities-at-MIFCOOn August 5, 2020, India has extended the Line of Credit (LoC) worth US$18 million to the Government of Maldives for the expansion of fishing facilities at Maldives Industrial Fisheries Company (MIFCO) based in Felivaru, Lhaviyani Atoll, through the development of fish collection and storage facilities, and the setting up of a tuna cooked plant and fishmeal plant. The credit line agreement was signed by India’s Export-Import Bank (EXIM)’s Chief General Manager Sudhattaa Mandal and Maldivian Minister of Finance Ibrahim Ameer.

  • The amount will also be utilized to develop a 50 tonne ice plant in Gemanafushi, Gaafu Dhaalu Atoll, in addition to a 100 tonne ice storage facility.
  • This extension is a part of US$800 million LoC offered by India through Export-Import Bank of India (EXIM Bank) carrying an interest rate of 1.75% with repayment tenor of 20 years and a 5-year moratorium.

Key Points:

-Notably, fishing is a key driver of the Maldivian economy through exports and is globally known for its pole-and-line artisanal fishing that is sustainable and responsible.

– This extension will benefit the Maldives in accessing new markets, increasing fish collection and storage capacity, along with creating greater value addition and additional sources of income.

Recent Related News:

On the occasion of Independence Day of the Maldives on July 26, 2020, the largest Indian public sector bank, State Bank of India (SBI) provided liquidity support of USD 16.20 million as a COVID-relief for the Government of Maldives to overcome liquidity shortage.

About Maldives:

Capital– Male
Currency– Maldivian rufiyaa
President– Ibrahim Mohamed Solih